Specifically, 38 per cent would start a side hustle, and 17 per cent would start a small business for their sole income. Overall, 68 per cent are motivated to top up their income.
To find out whether Australians would consider starting a new business – even if it was a less serious side hustle - to generate extra income, business loan comparison platform Small Business Loans Australia commissioned a survey of an independent, nationally representative panel of 1005 Australians.
Small business Loans Australia found that the younger the age group the more likely they are to start a small business for their main income in the next five years or a side hustle to complement their income. Half (51%) of under-25s would start a side hustle, closely followed by 49 per cent of 35-44-year-olds.
The findings come as financial stress and economic anxiety impact Australians as young as 15-19 years old at triple the rate (31%) of previous years3. In the workforce, Australians spent an additional 24 million hours a month working than they did 12 months ago.
Small Business Loans Australia investigated the motivations among respondents, offering them seven reasons for starting a small business: better income, desire for more control and independence over their career growth, work-life balance, opportunity to fill a market gap, to create work they enjoy, opportunity for creativity, and to leave toxic work cultures or bosses.
Few respondents were driven by market opportunities or filling service gaps (at 19%). Instead, 68 per cent of respondents are motivated to improve their income, followed by 56 per cent who are looking to enjoy their work. Achieving work-life balance motivated 48 per cent, while 37 per cent are seeking career control and creativity. Only 14 per cent aimed to leave a toxic work environment.
The desire for better income is driven by 25-44-year-olds, who are more likely to have mortgages and families: three quarters (74%) of respondents aged 35-44 chose this reason, followed by 72 per cent of those aged 25-34.
The desire for more independence and control over careers was important to Aussies starting out in the workforce. An equal 44 per cent of 18-24-year-olds and 25-34-year-olds valued this compared to just 24 per cent of people aged 55-64, who are more likely to be at the height of their career or nearing retirement.
Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “Overwhelmingly, Australia’s high cost of living is driving the motivation behind a desire for an additional income. With financial pressures mounting and no sign of easing, people realise they need to be find ways to meet their living expenses.
“Small businesses enable them to earn more in the hours available around their main job. There is a certain amount of freedom and flexibility in small business, and that’s essential when you are starting something new and working around other employment.”
The full SBLA study can be found here: https://smallbusinessloansaustralia.com/factors-driving-small-business-start-ups-in-australia/.
